L-20 INTERNAL TRADE
A. One Word or One Line Questions
Q. 1. What do
you mean by Internal trade?
Ans. Internal trade refers to buying and selling of
goods inside the geographical boundaries of a country.
Q. 2. What are
the other names of Internal Trade?
Ans. (i) Home Trade.
(ii) Domestic
Trade.
Q. 3. Name the
types of Internal Trade.
Ans. (i) Direct Sale.
(ii)
Indirect Sale.
Q. 4. What is
direct sale?
Ans. When producer or manufacturer directly sells the
goods to the consumers then it is known as Direct Sale.
Q. 5. What is
Indirect Sale?
Ans. When producer or manufacturer sells their
products to the intermediaries i.e.
wholesaler, retailers etc. it is known as Indirect Sale.
Q. 6. What is
wholesale trade?
Ans. The wholesale trade means large scale buying of
goods from the manufacturers and selling them in small quantities to various
retailers.
Q. 7. Who is
wholesaler?
Ans. A wholesaler purchases goods from manufacturers
in large quantity and resells them to retailers in small quantities.
Q. 8. Name the
trader who is a link between manufacturer and retailer.
Ans. Wholesaler.
Q. 9. Name two
services provided by a wholesaler to the manufacturer.
Ans. (i) Facilitating large scale production.
(ii)
Helping in marketing information.
Q. 10. What is
the meaning of retail trade.
Ans. Retail trade refers to buying of goods in
relatively small quantities from wholesalers and selling them to ultimate
consumers.
Q. 11. Name the
trader acting as a link between the wholesaler and consumer.
Ans. Retailer.
Q. 12. Describe
one service of retailers towards wholesaler
Ans. The retailers provide valuable market information
to wholesalers about the changing attitude of the consumers towards their
tastes and fashion.
Q. 13. Describe
one service of retailers towards consumers.
Ans. The retailers inform the consumers about the
arrival of new products in the market.
Q. 14. Name
different types of Retailers.
Ans. (i) Itinerant Retailers/Mobile Retailers
(ii) Fixed
Shop Retailers.
Q. 15. Name
types of Fixed Shop Retailers.
Ans. Small Scale, Large Scale.
Q. 16. What is
the other name of Multiple Shops?
Ans. Chain Stores.
B. Fill in the
blanks
1. Complete the channels of distribution ........., Agent.........Retailer.........
2. Wholesaler is the link between .........
and.........
3. The term retailer has been taken from French
word.........
4. ......... carry their goods on their heads or their
backs and move from door to door in the residential localities of a city.
Ans.
1. Producer, Wholesaler, Customer, 2. Manufacturer and Retailer, 3.‘Re-tailer’,
4.Peddlers
C. True or False
1. The wholesaler purchases goods from retailers and
sell it to customers.
2. The retailers are last link in chain of
distribution of goods to consumers.
3. The retailers mostly transact business on credit
basis.
4. A departmental store of many retail shops under one
roof and management.
5. Super Bazaar is an example of retail shop.
Ans.
1. True, 2. True, 3. False, 4. True, 5. False
D. MCQ
1. The
wholesaler sell goods at
(a) Low Prices
(b) High Prices
(c) Moderate Prices
(d) Both (a) and (b)
2. Which one of
the following is correct regarding the wholesalers?
(a) Wholesaler is a link between manufacturer and
retailer
(b) Wholesaler purchases goods on credit and sellers
them to retailers in cash
(c) Wholesaler provides financial help to producers as
well as retailers
(d) Both (a) and (c)
3. Departmental
stores are having
(a) Low Operating Cost
(b) High Operating Cost
(c) Reasonable Operating Cost
(d) None of the above
4. Which one of
the following is the advantage of Departmental Store?
(a) Central Location
(b) Large variety of goods
(c) Public utility service to their customers
(d) All of the above
5. The stores
which deals in one type of product is known as:
(a) One price shops
(b) Street Stall Holders
(c) Chain Stores
(d) General Stores
Ans.
1. (a), 2.(d), 3. (b) 4.(d), 5. (c)
